Federal Reserve Rate Cut Projections: CME Reveals December Odds

Market analysts predict the Federal Reserve may take action in December, according to data from CME’s FedWatch tool. This indicates a 44.4% chance of a 25 basis point rate cut compared to a 55.6% probability for maintaining the current interest rate. Looking forward to January, the potential scenarios suggest a 48.6% chance of a cumulative 25 basis point rate cut, along with a 34.7% likelihood of no change and a 16.7% possibility of a cumulative 50 basis point reduction.